📅 Portfolio XIRR Calculator
Calculate exact annualized internal rates of return across multiple purchase dates, DCA installments, and current market valuations.
Cash Flow Entries
Negative (-) for cash invested / purchases, Positive (+) for current value or withdrawals.
| Date (YYYY-MM-DD) | Cash Flow Amount ($) | Description | Action |
|---|
Why XIRR Is Vital for Real-World Portfolios
Real investors don't invest a single sum and hold it untouched for decades. We make monthly 401(k) contributions, buy dips, receive dividends, and trim positions. Standard simple return formulas distort your real annualized performance. XIRR weights each cash installment by the exact number of days it was invested in the market.
Frequently asked questions
What is XIRR and how does it differ from CAGR?
CAGR measures annualized growth between a single starting and ending value. XIRR (Extended Internal Rate of Return) handles multiple, irregular cash inflows and outflows occurring on different dates over time.
Why are investments entered as negative numbers in XIRR?
In cash flow accounting, cash leaving your wallet to buy assets is a negative cash flow (-), while dividends received or current portfolio value (liquidation value) is a positive cash flow (+).
Is XIRR the best metric for SIP and DCA investors?
Yes. If you invest monthly or periodically into index funds or stocks, XIRR is the gold standard institutional metric for evaluating personal investment performance.
How does the XIRR calculation algorithm work?
XIRR solves for the discount rate that sets the Net Present Value (NPV) of all dated cash flows to exactly zero using the iterative Newton-Raphson numerical method.